Titus Regional Medical Center and Steve Jacobson, Individually v. Joseph T. Tretta, D.O.

CourtCourt of Appeals of Texas
DecidedNovember 21, 2005
Docket06-05-00060-CV
StatusPublished

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Titus Regional Medical Center and Steve Jacobson, Individually v. Joseph T. Tretta, D.O., (Tex. Ct. App. 2005).

Opinion



In The

Court of Appeals

Sixth Appellate District of Texas at Texarkana


______________________________


No. 06-05-00060-CV



TITUS REGIONAL MEDICAL CENTER AND

STEVE JACOBSON, INDIVIDUALLY, Appellants

V.

JOSEPH T. TRETTA, D.O., Appellee




On Appeal from the 276th Judicial District Court

Titus County, Texas

Trial Court No. 29692





Before Ross, Carter, and Cornelius,* JJ.

Opinion by Justice Cornelius

*William J. Cornelius, C.J., Retired, Sitting by Assignment



O P I N I O N


          This is a suit by Joseph T. Tretta, D.O., against Titus Regional Medical Center and Steve Jacobson, individually. In his amended petition, Tretta raised numerous claims sounding in tort, breach of contract, defamation, conspiracy, and statutory violations that allegedly damaged his professional and personal reputation, his business, and his prospects for future employment. The principal basis for Tretta's suit was his allegation that, when one of his patients died after he performed endoscopic sinus surgery on her, Jacobson and the Hospital set out to damage Tretta's professional practice and reputation and force him to leave the hospital through a conspiracy to improperly investigate him for professional incompetence, and falsely report to the National Practitioner Data Bank (NPDB) that he resigned from the Hospital while he was being investigated.

          Jacobson and the Hospital filed motions to dismiss and a motion for summary judgment based on claims that Jacobson was entitled to official immunity as to all claims against him, and the Hospital was entitled to sovereign immunity from both suit and liability as to contractual claims against it. The trial court granted the motion for summary judgment and plea to dismiss sustaining Jacobson's claim of official immunity as to the tort claims, but denied the motion and plea as to all other claims. The trial court denied the Hospital's motion for summary judgment for sovereign immunity on the contract, declaratory, and injunctive relief claims. Both Jacobson and the Hospital appeal pursuant to Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(5), (8) (Vernon Supp. 2005).

          We reverse the trial court's order denying Jacobson's motion for summary judgment as to all claims other than tort claims, and affirm the trial court's judgment insofar as it grants Jacobson judgment on the tort claims, and we affirm the trial court's denial of the Hospital's motion for summary judgment on the contract, declaratory, and injunctive relief claims.

          When a defendant moves for summary judgment on the basis of an affirmative defense such as immunity, the defendant must prove by competent summary judgment evidence each element of the defense as a matter of law. City of Lancaster v. Chambers, 883 S.W.2d 650, 653 (Tex. 1994); Montgomery v. Kennedy, 669 S.W.2d 309, 310–11 (Tex. 1984).

          Official immunity is an affirmative defense that protects an officer or employee of a governmental entity from liability when that officer or employee (1) acts in the scope of his employment, (2) performs discretionary duties, and (3) acts in good faith. Univ. of Houston v. Clark, 38 S.W.3d 578, 580 (Tex. 2000); Wadewitz v. Montgomery, 951 S.W.2d 464, 466 (Tex. 1997); Johnson v. Campbell, 142 S.W.3d 592, 594 (Tex. App.—Texarkana 2004, pet. denied). If the officer or employee acts within the scope of his authority in the performance of discretionary duties and acts in good faith, he is entitled to official immunity even though his acts are negligent or against the governmental entity's regulations or policy. City of Lancaster v. Chambers, 883 S.W.2d at 655; Johnson v. Campbell, 142 S.W.3d at 594.

          Sovereign immunity has two components: (1) immunity from suit, and (2) immunity from liability. Tex. Natural Res. Conservation Comm'n v. IT-Davy, 74 S.W.3d 849, 853–54 (Tex. 2002); Longview Indep. Sch. Dist. v. Vibra-Whirl, Ltd., 169 S.W.3d 511, 513 (Tex. App.—Texarkana 2005, no pet.). Generally, the State's immunity from liability is waived when the State enters into a contract with a private party or entity. Fed. Sign v. Tex. S. Univ., 951 S.W.2d 401, 405 (Tex. 1997). The State is amenable to suit if it waives its immunity from suit by giving express consent to the suit. Longview Indep. Sch. Dist. v. Vibra-Whirl, Ltd., 169 S.W.3d at 513.

          In considering whether Jacobson's summary judgment evidence conclusively proved he is entitled to official immunity, we first determine if he, as chief executive officer (CEO) and administrator of the Hospital, is entitled to official immunity if he is otherwise qualified. The summary judgment evidence shows that the Hospital is a governmental entity, but it also shows that Jacobson was not an employee of the Hospital. Instead, he was an employee of Quorum, a hospital staffing company that by contract provided him to the Hospital as CEO and administrator. Tretta contends that, because Jacobson was not an employee of the Hospital, he is not entitled to official immunity. We disagree. The majority rule, and we think the better rule, is that official immunity does extend to a private party acting pursuant to a contract with a governmental entity as an official fulfilling statutorily mandated functions. Guerrero v. Tarrant County Mortician Servs., 977 S.W.2d 829, 832 (Tex. App.—Fort Worth 1998, pet. denied); Knowles v. City of Granbury, 953 S.W.2d 19, 24 (Tex. App.—Fort Worth 1997, writ denied); Putthoff v. Ancrum, 934 S.W.2d 164, 169–73 (Tex. App.—Fort Worth 1996, writ denied). To deny official immunity to a person in such circumstances would, in the words of the court in De Vargas v. Mason & Hanger-Silas Mason Co., 844 F.2d 714, 722 (10th Cir. 1988), place defendants "between Scylla and Charybdis—potentially liable either to plaintiffs for obeying the contract, or to governmental bodies for breaching it." Other federal cases support this majority rule. See Eagon v. City of Elk City, Okla., 72 F.3d 1480, 1489–90 (10th Cir. 1996); Williams v. O'Leary, 55 F.3d 320, 323–24 (7th Cir. 1995); Sherman v. Four County Counseling Ctr., 987 F.2d 397 (7th Cir. 1993); Frazier v. Bailey, 957 F.2d 920, 928–29 (1st Cir.

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